The Ultimate Racking Up Debt Quiz

Debt has become a household term in recent years. It's something most Americans live with, whether regarding student loans, credit card debt or steep mortgage payments. Learn all about one of the biggest growing concerns in America by taking this quiz.

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Question 1 of 15

According to a 2010 Gallup survey, what are the two top concerns of Americans?

terrorism and government debt

Terrorism and government debt are keeping Americans up at night, according to a 2010 Gallup survey. In general, Americans believe these two concerns are significantly effecting their well-being.

government debt and home foreclosure

terrorism and credit card debt

Question 2 of 15

What is a big contributor to household debt?

lack of familial communication

There must be open communication with your spouse regarding spending habits to avoid debt and living beyond your means. A spouse should never be sneaking purchases or lying by omission regarding purchases.

not planning for emergencies

spending too much on the children

Question 3 of 15

What habit is increasingly becoming a financial drain on families?

smoking

drinking

gambling

Online gambling, sport gambling or simply buying a lottery ticket now and then puts a significant financial drain on a household income. To make matters worse, more and more Americans report having significant gambling problems, resulting in financial ruin.

Question 4 of 15

Each generation, the percent of savings that people accumulate lowers by ____ percent

5

10

Starting with the baby boomers, the percent of savings lowers by 10 percent with each subsequent generation. For various reasons, younger generations are simply not saving as much for retirement or emergencies.

15

Question 5 of 15

Which age group has the second highest bankruptcy rate in the United States?

18 to 34 years

Even with decent salaries, young adults in the 18- to 34-year-old age range have the second highest rate of bankruptcy in the United States. Young people simply lack the knowledge necessary for effective money management.

34 to 40 years

40 to 46 years

Question 6 of 15

Your debt should not exceed ________of your annual income.

36 percent

To pay off your debt within your means, your debt should never exceed more than 36 percent of your annual income.

46 percent

56 percent

Question 7 of 15

In the past decade, what was a big culprit of accumulating debt?

being impulsive and jealous

reduced income but same expenses

both of the above

Americans were living way beyond their means, making impulsive purchases and trying to keep up with the Joneses. As the economy began to fall, people lost their jobs and began to suffer from reduced income, but kept up with the same monthly expenses.

Question 8 of 15

In 2010, how much credit card debt in the United States was left unpaid according to bank reports?

$1 billion dollars

$8 billion dollars

$18 billion dollars

Credit card debt is more the norm than the exception nowadays. American banks reported a total of $18 billion of unpaid credit card debt in 2010.

Question 9 of 15

What happens if you cannot make your mortgage payments?

You are immediately kicked out of your home.

You can continue living in your home during the lengthy foreclosure process.

If you can't make your monthly mortgage payments, the bank will eventually seize your property. The foreclosure process is lengthy, however, and you can likely continue living in your home during this time.

The bank will hand over your account to a debt collector.

Question 10 of 15

What happens to the debt owed on a foreclosed home?

You're no longer required to pay off this debt.

You may lose your home, but at least all debt on the home is forgotten.

The debt is transferred to a debt collector.

The bank will seize all your money from your bank account.

Question 11 of 15

What type of loan is not forgiven in bankruptcy?

student loan

Student loans are not the same as other loans. Although they typically have lower interest rates, you are still required to pay them off after bankruptcy.

car loan

both of the above

Question 12 of 15

Since 2006, how much has the American federal government given out in student loans?

$100 billion

$200 billion

$300 billion

More and more young adults require student loans to obtain a college degree, which is putting a heavy strain on the economy and the government, with nearly $300 billion dished out in government student loans since 2006.

Question 13 of 15

What has happened to the American housing market in recent years?

Many people owe more money on their home than their home is actually worth.

Many people are unable to pay their now steep monthly mortgage payments.

both of the above

The housing market has literally collapsed in the United States. Some people now are struggling to make their high monthly mortgage payments, owing more money than their home is actually worth.

Question 14 of 15

What happens to your credit rating when you foreclose on your home?

Your credit rating remains sound.

Your credit rating is only mildly affected.

Your credit rating is tarnished for years.

Foreclosure is the only option for some people, but this results in a bad credit rating for many years. Unfortunately, this further perpetuates a personal financial crisis and even more difficulty getting back on your feet.

Although you may be playing by the rules of the game, only paying the minimum payment results in accumulated and unmanageable credit card debt. Also, if you are paying only the minimum payment, you may be living beyond your means.